A Gigawatt of Wind Energy in Pakistan
Pakistan is prepared to approve a Norwegian company’s plan to build a 150-megawatt wind farm, the first part of a $1 billion plan that could boost by a third the announced capacity for clean-energy power plants, according to Bloomberg News. Joar Viken, the CEO of NBT, a Norwegian company focused on building wind farms in China, Norway and Pakistan, said he plans to tap financing for his project from one of three Chinese turbine makers that his company is talking with about supplying machinery for the facilities in Pakistan.
Pakistan has about 1000 MW of wind power plants at various stages of planning and construction, and another 498.5 megawatts of wind programs announced, mostly in Jhimpir, Gharo, Keti Bandar and Port Qasim wind corridors along the Arabian Sea coast in Sindh. The output from these plants will provide much-needed additional power for Pakistan, improve the country’s energy security, and lower reliance on natural gas and furnace oil. It is estimated that the Gharo to Keti Bandar corridor alone could produce between 40,000 and 50,000 megawatts of electricity, says Ms. Miriam Katz of Environmental Peace Review who has studied and written about alternative energy potential in South Asia.
Other major wind energy projects in Pakistan include American AES Corporation's 150 MW farm, Turkey's Zorlu Enerji Electrik Uretim's 56 MW farm, and Pakistan's FFC Energy's 50 MW farm.
Pakistan is fortunate to have something many other countries do not, which are high wind speeds near major population centers, according to data published by Ms. Katz .
Near Islamabad, the wind speed is anywhere from 6.2 to 7.4 meters per second (between 13.8 and 16.5 miles per hour). Near Karachi, the range is between 6.2 and 6.9 (between 13.8 and 15.4 miles per hour).
In Balochistan and Sindh provinces, sufficient wind exists to power every coastal village in the country. There also exists a corridor between Gharo and Keti Bandar that alone could produce between 40,000 and 50,000 megawatts of electricity, says Ms. Katz who has studied and written about alternative energy potential in South Asia. Given this surplus potential, Pakistan has much to offer Asia with regards to wind energy. In recent years, the government has completed several projects to demonstrate that wind energy is viable in the country. In Mirpur Sakro, 85 micro turbines have been installed to power 356 homes. In Kund Malir, 40 turbines have been installed, which power 111 homes. The Alternative Energy Development Board (AEDB) has also acquired 18,000 acres for building wind farms.
In addition to high wind speeds near major centers as well as the Gharo and Keti Bandar corridor, Pakistan is also very fortunate to have many rivers and lakes. Wind turbines that are situated in or near water enjoy an uninterrupted flow of wind, which virtually guarantees that power will be available all the time. Within towns and cities, wind speeds can often change quickly due to the presence of buildings and other structures, which can damage wind turbines. In addition, many people do not wish for turbines to be sited near cities because of noise, though these problems are often exaggerated.
Pakistan has a goal to generate at least 5 percent of its electricity needs from renewable sources by 2030, according to Pakistan Alternative Energy Development Board (AEDB). Last year, 53 percent came from natural gas, 30 percent from oil and the rest from coal, nuclear and hydropower, according to data from BP Plc. The London-based oil company didn’t measure any sources of renewable energy there.
The country’s electricity shortfall reaches as much as 3,628 megawatts per day, according to demand-supply data available on the ministry of power and water website.
Related Links:
Haq's Musings
Pakistan Launches Wind Farm Projects
Renewable Energy to Solve Pakistan's Electricity Crisis
Electrification Rates By Country
Wind Turbine Manufacturing in Pakistan
Pakistan Pursues Hydroelectric Power Projects
Solar Energy for Sunny Pakistan
Wind Power Tariffs in Pakistan
Pakistan's Twin Energy Shortages
Pakistan Council of Renewable Energy Technology
Renewable Energy for Pakistan
Abundant Cheap Electricity From Pakistani Coal
Pakistan Policy on Renewable Technology
Sugarcane Ethanol Project in Pakistan
Community Based Renewable Energy Project in Pakistan
 |
| Wind Farm at Jhimpir, Sindh, Pakistan |
Pakistan has about 1000 MW of wind power plants at various stages of planning and construction, and another 498.5 megawatts of wind programs announced, mostly in Jhimpir, Gharo, Keti Bandar and Port Qasim wind corridors along the Arabian Sea coast in Sindh. The output from these plants will provide much-needed additional power for Pakistan, improve the country’s energy security, and lower reliance on natural gas and furnace oil. It is estimated that the Gharo to Keti Bandar corridor alone could produce between 40,000 and 50,000 megawatts of electricity, says Ms. Miriam Katz of Environmental Peace Review who has studied and written about alternative energy potential in South Asia.
Other major wind energy projects in Pakistan include American AES Corporation's 150 MW farm, Turkey's Zorlu Enerji Electrik Uretim's 56 MW farm, and Pakistan's FFC Energy's 50 MW farm.
Pakistan is fortunate to have something many other countries do not, which are high wind speeds near major population centers, according to data published by Ms. Katz .
Near Islamabad, the wind speed is anywhere from 6.2 to 7.4 meters per second (between 13.8 and 16.5 miles per hour). Near Karachi, the range is between 6.2 and 6.9 (between 13.8 and 15.4 miles per hour).
In Balochistan and Sindh provinces, sufficient wind exists to power every coastal village in the country. There also exists a corridor between Gharo and Keti Bandar that alone could produce between 40,000 and 50,000 megawatts of electricity, says Ms. Katz who has studied and written about alternative energy potential in South Asia. Given this surplus potential, Pakistan has much to offer Asia with regards to wind energy. In recent years, the government has completed several projects to demonstrate that wind energy is viable in the country. In Mirpur Sakro, 85 micro turbines have been installed to power 356 homes. In Kund Malir, 40 turbines have been installed, which power 111 homes. The Alternative Energy Development Board (AEDB) has also acquired 18,000 acres for building wind farms.
In addition to high wind speeds near major centers as well as the Gharo and Keti Bandar corridor, Pakistan is also very fortunate to have many rivers and lakes. Wind turbines that are situated in or near water enjoy an uninterrupted flow of wind, which virtually guarantees that power will be available all the time. Within towns and cities, wind speeds can often change quickly due to the presence of buildings and other structures, which can damage wind turbines. In addition, many people do not wish for turbines to be sited near cities because of noise, though these problems are often exaggerated.
Pakistan has a goal to generate at least 5 percent of its electricity needs from renewable sources by 2030, according to Pakistan Alternative Energy Development Board (AEDB). Last year, 53 percent came from natural gas, 30 percent from oil and the rest from coal, nuclear and hydropower, according to data from BP Plc. The London-based oil company didn’t measure any sources of renewable energy there.
The country’s electricity shortfall reaches as much as 3,628 megawatts per day, according to demand-supply data available on the ministry of power and water website.
Related Links:
Haq's Musings
Pakistan Launches Wind Farm Projects
Renewable Energy to Solve Pakistan's Electricity Crisis
Electrification Rates By Country
Wind Turbine Manufacturing in Pakistan
Pakistan Pursues Hydroelectric Power Projects
Solar Energy for Sunny Pakistan
Wind Power Tariffs in Pakistan
Pakistan's Twin Energy Shortages
Pakistan Council of Renewable Energy Technology
Renewable Energy for Pakistan
Abundant Cheap Electricity From Pakistani Coal
Pakistan Policy on Renewable Technology
Sugarcane Ethanol Project in Pakistan
Community Based Renewable Energy Project in Pakistan
Comments
Click here to see details of the program.
http://www.powerasia.com.pk/icaep2011/presentations/Session1/Senator_Rukhsana_Zuberi.pdf
ISLAMABAD, Oct. 08 -- In order to attract investment in the energy sector, the National Electric Power Regulatory Authority (Nepra) has set upfront tariff for wind power projects along with cutting down paper work.
Upfront tariff of Rs12.61 per unit has been determined for wind power plants that will be set up with a loan from Pakistani banks in rupee and Rs17.28 per unit for plants that will use loans in dollar from foreign banks.
Upfront tariff is the price Central Power Purchasing Agency (CPPA) will pay to purchase electricity from wind power plants.
This upfront tariff will be applicable to those wind power projects of 1,500MW that would be commissioned first.
This incentive will also be given to those investors who will be able to meet all conditions of setting up wind power plants till December 2012 and remain effective for 20 years.
The decision will stop the time consuming process of wind power companies going to Nepra for tariff determination, an official said.
The government plans to generate 1,500MW through wind power by the end of next year.
Independent power producers have also asked for an upfront tariff as currently each power producer is given a different rate.
Under upfront tariff mechanism, the role of Nepra has been minimised. The period of setting up a wind power plant will also be reduced from existing three to two years.
Wind power projects of at least 1,000MW are expected to be commissioned in Sindh with projected investment of $2.5 billion.
Gharo wind corridor in Hyderabad has the potential to generate 50,000MW, according to Alternative Energy Development Board data. Around 30,000 acres of land has been allocated for wind power plants in the area.
At present, nine companies are working on setting up 50MW wind power plant each to generate 450MW with financial close expected by the end of 2011.
The government also hopes that Norwegian company NBT will set up plants to generate 250MW to 500MW in Sindh after upfront tariff has been announced. The company has also signed an agreement with Shaheed Zulfikar Ali Bhutto Institute of Science and Technology (SZABIST) for a 50MW wind power plan
http://www.power-eng.com/news/2011/10/1516429205/pakistan-nepra-approves-tariff-for-wind-power-projects.html
KARACHI: President Asif Ali Zardari said by end of year 2012, Pakistan would be able to produce 500 MW of wind power.
During briefing by Alternate Energy Development Board, Board of Revenue Sindh and Sindh Investment Board on wind power projects he called for periodic reports to be submitted to the Presidency indicating progress made and bottlenecks encountered.
Three wind power projects of 50 MW each would start producing power within a year and work on ten projects of 50MW each would start early next year. Another five projects were at initial stage of financial close in the year 2012.
President was informed all companies involved with wind power projects have suggested announcement of upfront tariff to save at least six months project time, which is spent in tariff determination by concerned authority.
Zardari asked NEPRA to examine suggestion and expressed hope NEPRA would soon arrive at a consensus upfront tariff regime for all projects till the capacity to produce 2000 MW is achieved.
However, option of opting for normal tariff determination system would remain open for companies opting not to go for upfront tariff. He said incentives would be given to companies that would be able to start their power production within one year.
http://www.dailytimes.com.pk/default.asp?page=2011\11\12\story_12-11-2011_pg5_3
ISLAMABAD, Nov. 12 -- The Asian Development Bank has agreed to provide about $98 million for three wind energy projects to be set up by the private sector in Kutti Kun area near Karachi port.
The projects with an estimated generation capacity of 150MW involving construction, erection and operation of wind mills would sell electricity to the national grid under a 20-year contract, officials told media on Wednesday.
The renewable projects have been sponsored by Fauji Foundation, Fauji Fertiliser Bin Qasim, Islamic Infrastructure Fund and Tapal Group.
The sources said that the projects were scheduled to be approved by the ADB's executive board on Dec 1 and Dec 8.
The ADB will also provide a loan of $31.50 million to the government for a renewable energy sector investment programme, targeting to cover by 2015 3.5 per cent of power generation.
The bank will also provide technical assistance to Pakistan for increased energy security.
The sources said that in view of the chronic energy shortages, the government was undertaking a multi-pronged strategy, including a programme that will replace inefficient thermal generation stations with larger and efficient facilities.
Under the energy efficiency development project for which the government is seeking a loan of $370 million, thermal power generation facilities to be replaced or rehabilitated will be identified and prioritised as suggested in a diagnostic study completed by the Agence Francaise de Development of France
http://www.power-eng.com/news/2011/11/1541202284/pakistan-adb-to-provide-98m-for-wind-power-projects.html
As part of an ambitious strategy of the government to bridge gap between demand and supply of electricity, the Alternative Energy Development Board (AEDB) would launch one wind power project every month. "The 2012 will be remembered as the year of wind power in Pakistan as we are planning to inaugurate one project every month in the current year," an AEDB official told.
Last week, Federal Minister for Water and Power Syed Naveed Qamar and Chinese Ambassador to Pakistan Liu Jian jointly performed the groundbreaking of 50 megawatt wind power project, which would be set up in Jhimpir area of Sindh. The official said that Pakistan has vast potential to generate electricity through alternative energy sources, which is reflective from the fact that alone the Thatta district has the capacity of producing 15,000 MW wind power.
Sources in the board said the project is being executed in collaboration with a Chinese company : Three Gorges : which has been mandated to set up total 20 wind-farms of 50 MW each during next five years.
This is the company's first project in Pakistan, while in total, it is third wind power project initiated in the country, the sources added.
They said that AEDB has set a target to generate 1500 MW wind power by 2013, which seems achievable because of the serious and accelerated efforts of the government.
The government has introduced an 'effective and attractive' renewable energy policy, which is bringing foreign investment in the power sector, the sources said, adding "It is an achievement that renewable and wind energy sectors are attracting the highest amount of private investment as compared to any other sector of the economy."
Special attention is being paid on other resources to produce electricity like hydro, hydel and wind, which are cheapest modes of generating power.
Besides, the focus is being given on the Thar coal reserves to use in power production, they added.
The Thar coal reserves worth $ 25 trillion have potential to generate 5,000 MW electricity for at least 800 years to meet growing energy demand of the country.
While, the power generated from coal gasification is the cheapest than other sources like furnace oil, natural gas and hydel. According to a report, a single reserve in Thar has about 850
trillion cubic feet coal (TCF).
http://www.power-eng.com/news/2012/01/1576631431/aedb-to-launch-one-wind-power-project-every-month.html
Despite being a late entrant to the wind energy race, Pakistan is soon going to join leading wind energy producers because of growing interest of investors and forward-looking renewable energy policies of the government, says Fauji Fertilizer Company Energy Limited Project Director Brigadier (R) Tariq Izaz.
He was speaking on the sidelines of a briefing arranged for select media at the company site at Jhampir, District Thatta, on Thursday.
“With eight projects of wind energy in progress, the country is all set to take off in this area,” said Izaz. “This will not only reduce electricity shortages, but will also help ease the burden of oil imports that cost over $12 billion annually.”
Fauji Fertilizer Company Energy Limited (FFCEL) will start producing electricity on commercial basis from November this year, which will be the first addition of wind power to the national grid. The company initially plans to produce 50 megawatts and later expand the capacity to 250 megawatts.
Izaz said the future of wind power was extremely bright because of the wind corridors in Sindh. To substantiate his point, he said, the fair category of wind speed in most parts of the world is between 6.2 and 6.9 metres per second (m/s). There are a few places that come under the good category where wind speed is between 7 and 7.3 m/s.
Fortunately, the wind speed in the Sindh corridor is stronger than the above two categories and it stands in the excellent category that is between 7.5 and 7.7 m/s.
FFCEL, a subsidiary of Fauji Fertilizer Company, will start trial energy production from June, which will be provided to the national grid free of charge by the time commercial production starts in November.
According to a USAID report, Pakistan has the potential of producing 150,000 megawatts of wind energy, of which only the Sindh corridor can produce 40,000 megawatts. Jhampir, Gharo and Keti Bander are the three areas where Sindh has a huge potential for wind energy.
Fauji Fertilizer has acquired 1,283 acres of land for the project and invested $135 million since its start in March 2007. At present, the company is in the process of installing 33 wind turbines.
Izaz claimed that the project had achieved 60% completion target. Seventeen sets of wind turbines and blades have already arrived, while remaining 16 turbines and blades are scheduled to reach Karachi in March.
He said seven wind turbines had already been installed and the remaining 25 towers were in different stages of manufacturing at the Karachi Manufacturing Works at Bin Qasim.
Keeping in view the country’s energy demand, the government has decided to increase the share of renewable sources in the overall energy mix. The renewable energy policy was unveiled in December 2006 and the Alternative Energy Development Board (AEDB) has issued 97 letters of interest for wind energy – FFC got 24th for 50 megawatts and 96th for an additional 100 megawatts. AEDB also allotted land to 23 investors – 12 in Gharo and 11 in Jhampir.
http://tribune.com.pk/story/341000/pakistan-to-take-lead-in-wind-energy/
JHIMPIR, Sindh, Apr 2, 2012 (IPS) - "I still cannot fathom how electricity can be produced by the wind," said a nonplused Mohammad Ahmed, a 55-year-old local baker, as he gazed up at a row of giant wind turbines.
These huge windmills, over a dozen of them, stand tall over the horizon, visual long before one actually enters the picturesque town of Jhimpir, about 70 kilometres from the southern port city of Karachi, in the Sindh province.
Some reaching 84 metres, others towering at 94 metres tall, weighing approximately 84 metric tonnes (excluding the weight of the towers) their blades slightly longer than the spread of the wings of a Boeing 747, these wind turbines dwarf some of the tallest buildings dotting Karachi’s skyline.
The blades carve through the winds of Jhimpir, producing energy. Four of these, set up by the Turkish company Zorlu Energi, have already been producing and supplying electricity to the government for the last three months.
A year ago, when the entire country was suffering from long hours of power outages and windmills first began producing electricity on an experimental basis in Jhimpir, it was perhaps the only town in Pakistan where the lights never went out.
"It was such a delight but it only lasted a year," said Khair Mohammad Qasi, a poet and a writer based in Jhimpir. "For the entire town, even electricity generated by one windmill is enough," he said.
"Our target for 2013 is to produce over 400 megawatts of electricity based on the land that has been made available," Arif Alauddin, head of the Alternative Energy Development Board (AEDB), the entity responsible for facilitating the private sector’s establishment of windmills, told IPS. "If we have more land, we think we can add 400-500 (additional megawatts) every year," he added.
At the moment, Pakistan is facing a shortage of about 5,000 megawatts of power. Classified as the "best wind regimes" in the country, the energy produced at Jhimpir will go to the national grid, and be spread throughout the country, "wherever it is needed," said AEDB’s spokesperson.
Alauddin explained, "At the (cut off wind speed of 12 metres per second) or higher, the turbines stop operation." The turbines also don’t operate below the speed of 3.5 metres per second.
Overall, the Sindh province has the potential to produce 50,000 megawatts of wind energy, whereas the various pockets around the country can produce as much as 350,000 megawatts, according to the National Renewable Energy Laboratory in the United States.
Every few days, a new turbine is seen rising out of the desert-like countryside.
At the moment there are 18 private companies in the field, with projects at various stages of completion. Each project will have a generating capacity of about 50 megawatts, costing 130 million dollars, using different turbines. By next year, eight to ten of these companies will be fully operational.
This means that soon the countryside will be littered with these giant towers, which will catapult Pakistan into the top 20 producers of wind energy.
While work on wind energy has been going on for some years, it is only in the last three years that the sector actually went into high gear.
But now Pakistan seems to be making up for the lost time.
"(Besides) the developed countries with mandatory emission reduction quotas under the Koyoto Protocol, we will be the third, maybe fourth (largest producer of wind energy) after China and India," estimated Alauddin.
http://ipsnews.net/news.asp?idnews=107285
Board of Investment (BOI), Government of Pakistan and Concentrix Solar Company of Korea Wednesday signed a Memorandum of Understanding (MoU) to construct a 300 MW Solar Energy Plant near Quetta, Balochistan.
The MoU was signed by M. Saleem Mandviwala, Chairman Board of Investment from Pakistan side and Dr. Choi Moon-Sok, Chief Executive Officer Concentrix Solar Company. The signing ceremony was held at the PM’s Secretariat which was witnessed by Prime Minister Raja Pervaiz Ahsraf, Federal Ministers and Chief Ministers of Balochistan and Sindh.
Concentrix is a subsidiary of German Company and is keen to make investment in the energy sector in Pakistan. Dr. Choi Moon-Sok met the PM yesterday and apprised him of his company’s plans.
http://www.thenews.com.pk/Todays-News-13-16665-Pakistan-Korea-sign-MoU-to-build-300MW-solar-energy-plant
The partnership aims at to facilitate the existing wind energy projects with the selection of an experienced EPC and project developer. This is the first ever collaboration of BEPL and GWP for supporting the wind energy sector of the country and will provide a strategic balance of services, utilising the two leading companies' respective strengths and resources to leverage the energy sector of Pakistan.
Global Wind Power (GWP), Denmark, is a leading international project developer specialising in developing, implementing, selling and managing wind turbine projects for professional investments. The Ambassador of Denmark to Pakistan, Jesper Moller Sorensen said: "As part of our Danida Business facility, we invited Buksh Energy to Denmark in October to meet prospective partners in the energy sector. I am really excited that Buksh Energy and Global Wind Power found each other. It is exactly innovative partnerships like this that will help Pakistan to meet its energy demand in the future. Denmark is a global world leader in wind solutions, and that potential in Pakistan is enormous." GWP's senior business advisor Nicky Mads Larsen, is also very positive about the company's future with BEPL.
He said, "The partnership between Buksh Energy and GWP aims at to combine the best of local and international know-how and experience for the benefit of the local industry, developers and investors. Although we have been in traditional project joint ventures before, our local partner agreement is a new and interesting form of collaboration for which we are very excited, and which allows us to explore markets that would otherwise be difficult to enter."
Fiza Farhan, Director of Buksh Energy also shared her enthusiasm for the project, said, "Buksh Energy is extremely excited to bring turnkey wind energy solutions to Pakistan with this venture. I believe that our unique partnership will open new avenues for the renewable energy sector and encourage the development of the wind energy sector in the country."
The CEO of BEPL, Asim Buksh said, "It is with great pride that we announce this partnership with GWP as our trusted project development and EPC partner. The partnership aims to fully facilitate the investors in setting up wind farms with a team of experts possessing the finest EPC and project management skill set. This move fits in with our vision 2020 to ensure that we are responsible for five percent of Pakistan's energy needs to be met by renewables."-
http://www.brecorder.com/fuel-a-energy/193/1153777/
Finance institution Proparco’s investment in this independent power producer will support the construction and operation of the plant that will be located to the northeast of Karachi. The move is part of attempts to back renewable power generation and drive economic development across the country, according to a Tuesday press release.
“This project will contribute not only to reducing pressure on the country’s power grid, but also to encouraging the development of strong, reliable and clean energy in the region,” said Claude Periou, CEO of Proparco. He went on to say that this is the entity’s third investment in Pakistan’s energy sector.
The planned wind farm will help the country reduce the use of polluting and expensive fossil fuels and will create 50 long-term job positions.
http://renewables.seenews.com/news/proparco-to-back-development-of-50-mw-wind-project-in-pakistan-467448
The Pakistani province of Sindh is expected to soon become home to 350 MW of operational wind power capacity.
An official of the Alternative Energy Development Board (AEDB) told the Associated Press of Pakistan (APP) on Sunday that seven 50-MW wind parks along the coastline should be completed by next month. The projects include developments by Yunus Energy, Metro Power Company, Gul Wind Energy and Master Energy.
Meanwhile, Sachal Energy Development Pvt Ltd (SEDL) is building another 50-MW wind farm in Jhimpir, Sindh. It is expected to be finalised by mid-2017, the official has added.
All of the projects are financed by the private sector, he said as quoted by the news agency.
Abraaj Group is to acquire a majority stake in a clean energy company in Pakistan, its second investment in the country this year.
The Dubai company is acquiring the stake in Jhimpir Power from Burj Capital.
It is developing a 50 megawatt wind power project in Sindh, south-east Pakistan, which is expected to be completed early next year.
The area, known as the Jhimpir wind corridor, is about 120 kilometres east of Karachi. It already has more than 550MW of wind farms in operation and more than 1 gigawatt is under construction or planned.
Pakistan has been working on establishing investor-friendly policies to attract investment into the renewables sector.
The country is targeting a 6 per cent mix of renewables in its total power mix by 2030. While this may seem small compared with the UAE’s goals of clean energy sources making up 30 per cent of energy generated by 2030, Pakistan needs far more infrastructure expansion before capacity can be added.
"With a shortage of over 6,000MW and rising power consumption in Pakistan today, we are excited by the sheer size of the clean energy infrastructure opportunity, enabling government policies and the potential of the Jhimpir wind corridor," said Sev Vettivetpillai, the managing partner and head of the Abraaj thematic fund.
This is not Abraaj’s first foray into the country’s energy sector. The investment firm sold its stake in power utility K-Electric for US$1.7 billion in October, representing one of the largest private transactions in Pakistan.
"Having invested across the energy value chain in growth markets, including the power sector in Pakistan, we look forward to growing our renewable footprint and consolidating our presence in the sector," Mr Vettivetpillai said.
The Dubai company has invested across the energy value chain to the tune of $1bn in 10 investments in growth markets.
Saad Zaman, an Abraaj partner, said that this was just continuing on the success of the company’s first wind project in Pakistan. "The attractive renewable power policy framework implemented by the government has created a strong impetus for the private sector to invest in clean energy," he said.
Abraaj said this month that it had acquired a stake in Islamabad Diagnostics Centre.
Pakistan’s Alternative Energy Development Board (AEDB) on Friday signed contracts with the developers of projects that will see the country expand its wind power capacity by 560 MW.
The government agency, which is tasked with promoting renewables installation in Pakistan, has inked implementation and guarantee direct agreements with independent power producers (IPPs) regarding 11 projects. The move is in line with the country’s 30% national renewables goal by 2030 and efforts to cut dependence on fossil fuel imports. The new capacity is expected to lead to the production of over 1.8 billion kWh of clean power per year, AEDB said.
Six of the schemes will be supported by the International Finance Corp (IFC), which on Friday signed agreements to finance the so-called Super Six project portfolio with USD 450 million (EUR 406.9m) in debt. Those power plants, with a combined capacity of 310 MW, will be installed in the Jhimpir wind corridor in Sindh province and will be able to generate enough electricity to cover the annual needs of 450,000 homes while offsetting around 650,000 tonnes of carbon dioxide (CO2) emissions annually, IFC said in a separate statement. It will provide some USD 86 million in funds from its own account and USD 234 million mobilised from other lenders.
The 11 projects are expected to become operational by 2021.
(USD 1.0 = EUR 0.904)
https://www.thethirdpole.net/en/energy/analysis-chinas-shifting-energy-investments-in-pakistan-from-coal-to-renewables/
China’s energy investments in Pakistan have so far focused on coal and hydropower projects. But several China-backed wind projects are now underway, and Islamabad says it is ready to go big on solar.
Until about a decade ago, the Jhimpir region in Pakistan’s southern province of Sindh was a dry, barren stretch of land, inhabited by nomadic tribes. Today, it is home to hundreds of mammoth rotating blades in about two dozen wind farms.
Around 90 kilometres from Karachi, Jhimpir is the heartland of Pakistan’s largest ‘wind corridor’, which has the potential to produce 11,000 megawatts (MW) of clean energy. Among early investors was the China Three Gorges Corporation, a Chinese state-owned power company, operating under an investment holding company, China Three Gorges South Asia Investment Limited.
The company has funded and built three wind projects with a combined capacity of nearly 150 MW. The first of these began construction in 2012. The latter two projects, completed in 2018, were funded under the China Pakistan Economic Corridor (CPEC), an integral part of Beijing’s flagship multibillion-dollar Belt and Road Initiative (BRI). In an official statement following Pakistan’s prime minister Shehbaz Sharif’s visit to China on 1-2 November 2022, Sharif reaffirmed the importance of CPEC to Pakistan’s development.
For the time being, renewables represent only a small portion of Pakistan’s power generation mix. Of a total of 43,775 MW, installed capacity for wind and solar represent around 4.2% (1,831 MW) and 1.4% (630 MW) respectively, according to the National Electric Power Regulatory Authority’s State of Industry 2022 report. In terms of CPEC, the November 2022 joint statement from China and Pakistan listed oil and gas as among the “priority areas of CPEC cooperation”.
But a recent shift in the direction of Chinese investment may be hugely significant for Pakistan’s energy future, and the climate.
The shift from coal?
In the years before the launch of CPEC in 2015, Pakistan was desperate to end its long, crippling power shortages. The country was keen to develop its untapped indigenous coal in Thar desert, but multilateral financial institutions were not interested. Along came China in 2013, with an offer to lend massive amounts for infrastructure development and coal mining.
Details of the financing deals are a closely guarded secret, but multiple Chinese-funded coal projects followed. Eight completed or under-construction coal projects are listed as part of CPEC, totalling 6,900 MW, which include four on Thar coal.
Then in 2021, after growing pressure on China – currently the world’s biggest polluter – to curb its greenhouse gas emissions, Beijing announced it would not build new coal-fired power plants overseas, and would increase support for low-carbon energy.
In December 2020, Pakistan announced that it would not build any new power projects that depend on imported coal, and pledged that by 2030 60% of its energy will come from clean and renewable sources. The government has since scrapped a number of potential coal projects, including a 300 MW plant at the Chinese-controlled Gwadar sea port in Balochistan. Reportedly, it is to be replaced by a solar plant.
https://www.thethirdpole.net/en/energy/analysis-chinas-shifting-energy-investments-in-pakistan-from-coal-to-renewables/
‘Greening’ CPEC
As Beijing tries to rebrand the BRI as an eco-friendly initiative, Chinese officials have promoted the idea of a ‘green’ CPEC. But Hina Aslam, research fellow at the Sustainable Development Policy Institute (SDPI), a think tank in Islamabad, points out that “in the energy sector, it has meant a greater focus on hydro rather than wind and solar”.
Besides wind energy in Jhimpir, China Three Gorges Corporation is investing heavily in what it is globally known for: hydropower (the company is behind the Three Gorges Dam in China, the world’s biggest power station). In June 2022, it completed a 720 MW project in Karot in northern Pakistan. Work is advancing on a 1,124 MW hydropower plant near Muzaffarabad, and a third 640 MW project has recently been approved in Mahl. The same company is behind both projects.
Put together, China Three Gorges aims to produce 2,500 MW of renewable energy in Pakistan, mostly through hydro. The Pakistan government – like many others – includes hydropower under the umbrella of renewable energy, but this is disputed by many environmentalists due to the often high environmental, social and financial costs of hydropower, including disruption of important riverine ecosystems. In Pakistan, dams are also politically contentious and a source of discord between upstream and downstream provinces. Yet, both Beijing and Islamabad appear keen to pursue hydropower.
But there are huge challenges facing Pakistan’s shift to renewable energy. “A lack of consistency in policy has been the biggest issue,” says Noman Sohail, senior business manager at China Three Gorges South Asia Investment Ltd. “Arranging lenders and finance for renewable projects is not a problem. But it’s disorienting when policies are reversed, tariffs renegotiated and unpaid capacity payments allowed to pile up.”
Growing popularity of solar
There is one form of renewable energy in particular that presents immense potential for Pakistan, but which has seen little investment to date: solar. A World Bank study in 2020 urged Pakistan to urgently expand solar and wind “to at least 30% of electricity generation capacity by 2030, equivalent to around 24,000 MW”. As of 2022, the proportion is 5.6% according to the National Electric Power Regulatory Authority’s State of Industry 2022 report.
Pakistan’s slow take-up of solar energy is evident from the fact that of the 21 energy projects completed or in development under CPEC, only one is solar: the 1,000 MW Quaid-e-Azam Solar Park in Cholistan Desert, Punjab, built by Chinese company Zonergy. This project, promoted as one of the world’s biggest solar parks, was meant to be completed by 2017. But only 40% of this capacity has been implemented so far.
https://www.thethirdpole.net/en/energy/analysis-chinas-shifting-energy-investments-in-pakistan-from-coal-to-renewables/
Suleman Rehman, chief executive of Burj Capital, a Dubai-based investment company focused on renewable energy in Pakistan, says that regardless of the government’s apparent lack of focus, the demand for affordable solar power is growing exponentially. “The competition is getting intense. More and more local players are coming up every month. Installing a 4 MW solar project is no longer a big deal for us,” says Rehman.
According to Rehman, the private sector is not waiting for policymakers to facilitate the energy transition. Those who can are turning to the solar option. That explains the recent proliferation of rooftop photovoltaic panels in big cities, as well as in off-grid villages across the country.
The solar future
Costly fuel imports have already had a crippling effect on Pakistan’s economy. This year, the volatility of global energy prices, exacerbated by Russia’s invasion of Ukraine, took a damaging toll on Pakistan’s foreign exchange reserves. The country was on the verge of a default before the International Monetary Fund agreed to step in to help it stay afloat.
In an attempt to reduce dependence on imported fuel, on 1 September 2022 prime minister Shahbaz Sharif announced the rapid deployment of 10,000 MW of solar power in the country. But details of how this will be achieved, and by when, are sketchy. The plan reportedly involves transitioning all public sector buildings to solar power. The proposal also encourages power plants running on coal, oil and gas to partially shift to solar power.
China will have a crucial role to play if this shift to solar is to happen, says Rehman, though it may come in a different form than the mega-projects seen under CPEC.
“China will still have a big role because they are producing the cheapest [solar] equipment worldwide. But I really hope the government won’t put this under CPEC because that would put local players at a disadvantage,” says Rehman.
Some Chinese companies will still be involved in investment in solar, but most will not be interested in small local projects, he feels. “In my experience, customers are happy for us to import Chinese-manufactured technology or their raw material, but they prefer to have local contractors and engineers to deal with.”
So far, Pakistan’s dependence on imports from China has prevented creation of local supply chains, says Rehman. That, he says, will need to change if the country is serious about exploiting its solar potential. “The government can facilitate this transition by encouraging domestic manufacturing,” argues Rehman.
https://tribune.com.pk/story/2341897/sindh-prepares-projects-under-psdp
Road sector schemes of over Rs85 billion were discussed and cleared in the meeting for the next federal PSDP. They included construction of the 189km Coastal Highway from Keti Bunder to Ali Bunder and building of the road to connect Shaheed Benazirabad, Sanghar to Matiari district.
Other projects included dualisation of the 31km track from Tando Allahyar to Tando Adam Road, construction of a 150km road from Rahri (Sukkur) to Guddu Barrage via Khanpur Mahar, Jarwar, Mirpur Mathelo and Mohammadpur. Also part of the proposed projects was the construction of a 135km additional carriageway of Mehran Highway (Nawabshah-raniput) and a 40km road from Thatta to Jhimpir.
There was also the construction of a 203km road from Sanghar to Salehpat via Mudh Jamraho up to Rahri Road and the 45km additional carriageway of road from Naudero to Lakhi.
https://pakobserver.net/green-investment-on-rise-pakistan-to-get-30-renewable-energy/
Until now, renewable energy sources make up a very minor fraction of Pakistan’s overall power generation mix. According to a recent report of the National Electric Power Regulatovry Authority, the installed capacity for wind and solar accounts for roughly 4.2% (1,831 MW) and 1.4% (630 MW) of a total of 43,775 MW, respectively.
China is already the biggest investor in green energy in Pakistan. Currently, out of the $144 million in foreign investment in solar PV plants in Pakistan, $125 million is from China, accounting for nearly 87% of the total.
Thanks to Chinese investments, a few weeks ago Federal Power Minister Khurram Dastgir Khan inaugurated two new wind energy projects in Jhimpir, Thatta District, Sindh, with an aim to produce cheaper and clean electricity through indigenous energy sources. Wind projects in this region have been one of several renewable energy projects to have received Chinese investment in recent years. Around 90 kilometers from Karachi, Jhimpir is the heartland of the country’s largest ‘Wind corridor’, which has the potential to produce 11,000 megawatts (MW) of energy from green resources.
https://profit.pakistantoday.com.pk/2025/04/04/thatta-cement-completes-4-8-mw-wind-power-project/
Thatta Cement completes 4.8 MW wind power project in Sindh, Cherat Cement commissions 6.065 MW solar power plant in KP
Two cement firms, Thatta Cement and Cherat Cement, have made significant advancements in increasing their renewable energy capacity.
Thatta Cement announced the successful completion of its 4.8 MW wind power project at its plant in Thatta, Sindh, ahead of schedule. The project, which became operational on April 3, 2025, adds to the company’s growing renewable energy portfolio, which now includes a combined 9.8 MW capacity from wind and solar sources.
As a result of this announcement, Thatha Cement’s stock saw an immediate boost, with the share price rising by Rs 4.26, or 1.97%, reaching Rs 220.25 by 11:29 AM on April 4, 2025. This upward movement reflects investor confidence in the company’s sustainable energy strategies.
The company’s equity profile shows a market capitalisation of Rs 21.96 billion, with approximately 30% of shares in free float, indicating a healthy liquidity position in the stock market.
In a similar move, Cherat Cement announced the successful commissioning of its 6.065 MW solar power plant at its factory site in Nowshera, Khyber Pakhtunkhwa, on April 3, 2025. The company expects the total project capacity to reach approximately 9 MW, with an additional 2.935 MW set to be energized within the current financial year.
This project is expected to enhance the company’s captive power generation capacity, reducing reliance on traditional power sources.